Are There Government Subsidies for Buying Machines? The Current Status of Central Government Equipment Upgrade and Smart Manufacturing Programs
The Bottom Line First
There's no fixed answer to "are there subsidies for buying machines?" Government subsidy programs are mostly announced annually, accept applications for a limited period, and stop when the funds run out, and most of them fund "R&D" or "transformation plans," not simply the cost of buying a machine.
As of October 15, 2026 (ROC year 115), no call for this year has been found for the central government program most directly related to equipment upgrades. The most recent announcements we could find for each program, and other channels worth evaluating, are as follows.
Subsidy for Low-Carbon and Smart Upgrading and Transformation of Small and Medium-Sized Manufacturers
This has been the central government subsidy closest to "buying equipment." It's run by the Ministry of Economic Affairs (in 2025, ROC year 114, it was organized by the MOEA Industrial Development Administration and implemented by the China Productivity Center) to help small and medium-sized manufacturers adopt low-carbon or smart equipment and systems. It comes in two versions:
- 10 or more regular employees: The most recent call was for 2025 (ROC 114), accepting applications from February 25, 2025 to March 20, 2025, or until funds ran out, with all applications online.
- 9 or fewer regular employees: The most recent version we could find was for 2024 (ROC 113), which closed on February 14, 2025.
2026 (ROC 115): No call for this year has been found so far. Whether it continues, when it will accept applications, and the subsidy cap and ratio all depend on the organizer's official announcement. Subsidy caps and self-funding ratios circulating online mostly come from news about previous years, so don't apply them directly.
Conventional Industry Technology Development Program (CITD)
Run by the MOEA Industrial Development Administration and implemented by the China Productivity Center, the 2026 (ROC 115) application guidelines have been announced. It subsidizes product development or R&D alliances in conventional industries:
- Product development: up to NT$2 million per project
- R&D alliances: up to NT$10 million per project
- The subsidy may not exceed 50% of total project funding
- Online applications only
It's an R&D program, not an equipment purchase subsidy. To use it, you need a concrete plan to develop a new product or technology. For the 2026 (ROC 115) application period and whether it's still accepting applications, go by the program website's announcements.
SBIR (Small Business Innovation Research)
SBIR is an R&D subsidy run by the MOEA Small and Medium Enterprise and Startup Administration; from 2026 the caps for each phase were raised, and applications are accepted on a rolling basis. It likewise funds innovative R&D, not simply buying machines; for details, see SBIR (Small Business Innovation Research). City and county governments also run local SBIR programs; see local government subsidies.
Not a Subsidy, but Directly Related to Buying Machines: Investment Tax Credits
If the equipment you buy meets the criteria for "smart machinery" or "energy saving and carbon reduction," you can evaluate the investment tax credit under Article 10-1 of the Statute for Industrial Innovation (產業創新條例): between January 1, 2025 and December 31, 2029, if total investment spending in the same tax year is NT$1 million or more, you can choose either to credit 5% of the spending against that year's corporate income tax, or 3% spread over 3 years. This is a provision currently in force and isn't affected by annual announcements, but you need to confirm in advance whether the equipment meets the definitions and apply online within the specified period; see smart machinery investment tax credits.
Common Eligibility Thresholds
Most central government subsidies target "small and medium-sized enterprises." Under Article 2 of the current Standards for Identifying Small and Medium-sized Enterprises (中小企業認定標準), businesses with paid-in capital of NT$100 million or less, or fewer than 200 regular employees, are SMEs; Article 3 defines businesses with fewer than 5 regular employees as small-scale enterprises. Employee numbers are calculated as the average number of labor insurance enrollees over the most recent 12 months.
Other common conditions across programs include: being a lawfully registered company or business, having no tax arrears, no serious violations of environmental, labor, or food safety laws in recent years, and no mainland Chinese capital; go by each program's application guidelines.
What to Prepare Before Applying
- Find the official announcement first: Check the websites of the Ministry of Economic Affairs, the Small and Medium Enterprise and Startup Administration, the Industrial Development Administration, or the implementing agency for the current year's application guidelines and application period.
- Check the timing: Many subsidies require purchases to be made only after approval; equipment bought before approval may not be eligible.
- Project proposal: Describe current problems, what will be introduced, and expected benefits (such as capacity, staffing, energy use), with figures backed by evidence.
- Quotations and equipment specifications: Ask equipment suppliers for formal quotations and specifications.
- Self-funding: Subsidies usually cover only part of the cost; you pay the rest.
If you need machine quotations and specifications for a proposal, please call Dong-Yih Machinery at 06-257-4644 or reach us through our contact information page.
FAQ
Q: Are there subsidies for buying machines?
A: The program most directly related to equipment upgrades, the "Subsidy for Low-Carbon and Smart Upgrading and Transformation of Small and Medium-Sized Manufacturers," was last announced for 2025 (ROC 114), and no 2026 (ROC 115) call has been found so far. SBIR and the Conventional Industry Technology Development Program are R&D subsidies, not simply for buying equipment.
Q: Which programs can we apply for now?
A: Subsidy programs are mostly announced annually with limited application periods, so go by the organizing agency's current website announcements. For equipment purchases, you can also evaluate the investment tax credit under Article 10-1 of the Statute for Industrial Innovation, a provision currently in force.
Q: How do we apply?
A: First find the current year's application guidelines, confirm eligibility and the application period, and prepare a project proposal, equipment quotations, and specifications; most programs accept online applications only. Note that many subsidies require purchases to be made only after approval.
Q: What counts as an SME?
A: Under Article 2 of the Standards for Identifying Small and Medium-sized Enterprises, paid-in capital of NT$100 million or less, or fewer than 200 regular employees.